Employees' Deposit Linked Insurance Scheme Rule Change 2020: EPFO has decided to extend the minimum assurance benefit under the Employees' Deposit Linked Insurance (EDLI) scheme
Employees’ Deposit Linked Insurance Scheme Rule Change 2020: Here’s good news for EPF-covered employees. The Employees’ Provident Fund Organisation (EPFO) has decided to extend the minimum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme. A decision in this regard was taken in the 226th meeting of the Central Board of Trustees (CBT). Now, the benefit will be provided to the family members of a deceased employee, who dies while in service, even if he has worked in several firms in the year preceding his death. This benefit was previously not paid if the member worked in more than one establishment during a continuous period o 12 months preceding his death.
The decision to change the provision for providing the minimum assurance benefit comes two years after the CBT had decided to hike the minimum assurance limit to Rs 2.5 lakh from Rs 1.5 lakh in 2018. The assurance benefit an eligible employee can get under EDLI scheme is capped at Rs 6 lakh.
“The Board recommended to extend the provision of minimum assurance benefit of Rs. 2.5/3 Lakh, payable to family members of deceased employee who dies while in service. Earlier, the benefit of minimum assurance of Rs. 2.5 Lakh and maximum assurance amount of Rs.6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death. Now Board has approved to extend these benefits even if a member had worked in multiple establishments,” the Ministry of Labour and Employment said in a statement on March 5.
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EPF members are automatically covered under EDLI scheme, which provides for payment of Rs 2.5 – Rs 6 lakh to an employee’s nominee in the event of his death during service.
In the meet, the Board also approved an amendment in Para 28(4) of EDLI Scheme 1976 to delegate the power to Additional Central Provident Fund Commissioners to grant online exemption. This decision will likely benefit lakhs of employees of more than 25,000 establishments, the statement said.